CECEP Wind-Power plans A-share issuance to fund wind projects, boost growth

CECEP Wind-Power Corp (SSE:601016) held its sixth board meeting on November 6, 2025, to approve a private placement of A-shares to a maximum of 35 specific investors. These include its controlling shareholder, China Energy Conservation and Environmental Protection Group Co., Ltd., and its wholly-owned subsidiary, CECEP Capital Holding Co., Ltd. The issuance aims to raise up to CNY3.6 billion, with net proceeds earmarked for seven wind power projects across Inner Mongolia, Gansu, Hebei, and other provinces, totaling an estimated investment of CNY4.66 billion.

The proposed private placement, which constitutes a related party transaction, is designed to enhance the company's capital strength and reduce its asset-liability ratio from 58.69% as of September 30, 2025. This move will support the expansion of CECEP Wind-Power's wind power business. The company's board believes the move aligns with national renewable energy policies and will bolster its profitability and sustainable development. China Energy Conservation and CECEP Capital have committed to a 36-month lock-up period for their subscribed shares.

The issuance will be subject to approval from relevant state-owned asset supervisory authorities, shareholders, and the China Securities Regulatory Commission (CSRC) after review by the Shanghai Stock Exchange. The company has also set forth a shareholder return plan for 2025-2027, committing to cash dividends of at least 15% of distributable profits annually, considering its growth stage and financial needs.